>> production assistance for "inside washington" was provided by allbritton communications and "politico," reporting on the legislative, executive, and political arena. 3 >> this week on "inside washington," egypt on the brink. does democracy have a chance? >> what is absolutely clear is that we are witnessing history unfold. >> at home, house republican leaders face a revolt on the spending cuts. new members say they aren't deep enough. >> our new majority is intent on honoring the commitment we made it to the american people. >> president obama tries to patch things up with big business. >> if you are trying to decide

whether to invest or expand, you don't know what is coming at you. >> two more senators decide to pack it in, jim webb and jon kyl. and congressman resigns. a warning in the digital age. the honor of the redskins says he has beeee smeared and slandered. he is suing. >> frog is wrong and that is what it is all about. -- wrong is wrong and that's what it's all about. captioned by the national captioning institute --www.ncicap.org-- >> mubarak steps down, and power to the egyptian military. what happens next? we don't know for sure. nobody knows for sure the scene in tahrir square after the announcement was made -- people were absolutely overjoyed at the news. mubarak was still in power as of early friday morning. he had moved to shamr el-sheikh, but he finally got the message

and stepped down. apparently what he did was extra constitutional. he handed it over to the military. i don't know what this means. what is next for the egyptian people? who can say, charles? >> well, look, the army was always the key element in this spirit after the bizarre speech mubarak gave thursday night, it seemed he was digging in, and then later they explain that he gave to the vice psident. there was a terrible, angry reacon in the streets on friday. the army had to make a choice, either to fire on the people and defend the the king, or that and go. -- or let him go. i think what happened is that the army had a quiet coup. the to -- they told market is over, we are in charge. it is now in the hands of the army, as if we are in 1952, when

the army deposed the king. >> exceptasser is not a round. >> no obvious strongman. >> no. this is a one time when the united states and foreign military aid is in thi best interest of the united states. 500 egyptians come here every year and train at war college at the national defense university, where they learn about american society, where relationships has be forged. bob gates to his counterpart, mike mullen to his, constant communication. the military was the best hope for transition in egypt and we will find out if it is not up to the task. >> although -- if it is up to the task. >> all those weapons say "made

in the united states," colby. >> they are key to the transition. they can provide the stability. but the question is greater than egypt now. you can imagine in riyadh, kuwait, the gulf states, >> this week on "inside washington-- rif states, -- riyad, kuwait, gulf states, tel aviv. >> i think they're glad it turned out peacefully so far. one thing that strikes me about the whole experience, for three weeks or so these people have been in the streets. really you had one bloody day.

given thth number people down there, it is remarkable that more were not killed. this is our first glimpse of the egyptian people. we don't really know them. i think they have shown remarkable tenacity, smarts, patients. >> encourage. -- and that courage. >> and that courage, yes. we don't know what is going to happen. but this is basically a peaceful coup that bodes well for them, i think. >> you have the army, the secret police. >> the army is behaving more that way then at the turkish army behaved. i think the army could play a very constructive role and will probably play a constructive role in egypt's future. >> it is the less respected

institution it because it -- overthrew the i i it is the new -- it is the most respected institution because it overthrew the monarchy. it is also a conscript army, an army of the people. i think it was willing to give the mubarak a lot of play, and that probably surprised m with that speech in thursday where he dug in. i think that is what it felt it had to act or it would lose its position. >> on thursday, members of the military or walking to the crowds, trying to calm them, "don't worry, it will work out all right." >> it reminds me of the words of the twice american leader -- the wise american leaders said that, "those who make peaceful change possible make a violent change inevitable."

-- those to make peaceful change in possible make mileage change inevitable." we have no idea, the vast majority of americans, about how vulnerable and faculty mubarak regime really was. until the first blow is struck, we don't really know. >> what we know, jeanne -- why don't we know, jeanne? >> nobody knew. when these things explode, there is a trigger. we know that autocracies crumble, but it could be in three or 50 years. >> jeanne, what do we now? >> i agree with charles. it is that insulated environment -- >> but the cia has relations with suleiman! >> we did note that the people over there wanted reforms.

the bush white house encouraged the egyptian government to loosen up on its people. we did know that much. do you know it was goioi to fall now, of course not. in the thursday night speech, mubarak and set out two goals. he wanted to finish his term and he wanted to die on egyptian soil. by resigning, he probably got the latter one. >> all i would say is the hard part starts now. this is a country with no experience in democracy. all the democrats and the selar elements have been repressed by the existing government. to organize opposition is the muslim brotherhood. -- the only organized oppososion is the muslim brotherhood. they are a scary lot. >> at bottom is. you have people who say there are modere stance of the muslim brotherhood. it is what i i is, an outlawed

group that is seen as a terrorist group in the united states. let's look at the larger question of egypt -- they don't have political institutions. they are a wisely educated population. this is not a third world country with nothing behind it. there are very smart people across egypt who would probably shape the direction for the new egypt. that question i have is what is going to happen and the rest of the region -- in the rest of the region once the sixth ship? egypt is a linchpin in the arab world. it is hard to believe th the autocratic countries in the middle east are not worried sick about what is going happen to them. this thing is triggered by one or two events added up to the point t ere even the army saw that could not stop this. >> could this become a magic

moment for the obama administration? >> it depends on how it works out. it has a few more steps to go here. including what happens in other nations. but just a lot riding on -- just elaborating on colby's point on education and the long history of egypt. these folks and egypt just organize through facebook, twitter, and street talk. -- and straight talk to the overthrow of a 30-year government. the idea that they don't have experience with democracy, it true, but they are smart and are obviously capable of using as many tools to organize -- >> what did he shut it down for awhile? -- but didn't he shut it down for awhile? >> and then they found a way to get around it.

these people on the banister did they have quite a bit of stability. >> just one factual point on the muslim brotherhood. it held 88 seats in the last election. as far as political payoff for american foreign policy achievements, at the camp david accords, jimmy carter loses. the berlin wall comes down, germany is the unite -- is reunited, george bush's defeat it. have determined, nato, this is rest of europe, -- harry truman, europe, he cannot even run for reelection. >> everything said about egypt, the proud history, long civilization, all of it applies to iran, 1979 well.

it ended up hijacked by the islamists. that is the threat in egypt today. the mother wants the institution of the sharia law on its -- the brotherhood wants the institution of the sharia law. on its website they say that no woman can be president of egypt. testimony given about how benign and secular an organization it is -- it wan a sharia law. our job is to strengthen the democrats, of which there are many in egypt, but need help and assistance. it is to create democracy that is going to live and not the one-man, one-vote, one time. >> you do not allow them. you compete and defeat if you think it is the wrong idea and wrong policies, just as in western europe, the communists were engaged andnd defeated at e

ballot box. >> no one is advocating outlawing them. >> we are broke, and we are borrowing 41 cents for every dollar that we spend. this spending binge was hurting job creation by eroding confidence, draining funds from private investment, spreading uncertainty among employers were big and small. >> house speaker john boehner of chilly proposed $100 billion in spending cuts. -- of originally proposed $100 billion in spending cuts. he was not able to get to that. >> he has the toughest job of washington, let's be blunt about it. he has 90 freshmen did any way of freshman comes with a conviction. this is a divinely prada joe, said here by a power greater than many -- divinely providential, a center by a

power greater than any of us have been exposed to. they have a demand by god. the appropriations committee, was the most respected institution on the hill, comes out with $40 billion worth of cuts, and the freshman state not on your life. now they're talalng about nih cuts, serious, serious cuts, and comes out next week, and it will be promised on an open row with members on both sides. it will be a legislative field day. >> absolutely. it will be shared joy to watch. our democracy working in its own way. the republicans hope to first made to 5% or 6% across-the- board. that way they don't have to identify every program that takes the hit. we've seen not just with the budget, but also the first few

floor votes they've taken, what they have lost, the republican majority lost on expanding the patriot act and trying to claw back un money, and was dferent pieces of the republican caucus breaking away. i=john boehner has the worst job in washington, and right behind is kevin mccarthy, republican whip, who has the vote count. we are in for a really what the time as we move forward with a lot of uncertainty about what will and will not come out of the house. >> if this a case of be careful what you wish for, charles? >> what they are cting is t 2011 budget, and that started in october 1, 2010. basically only half a year is left. you have to do huge amounts of cuts and what remains this year.

that makes it twice as hard. this could be a huge trap for republicans. again, if you ask for cross-the- board, that is ok. it is a percentage. the minute you go into programs, and they have already named 70 programs, only to get half of this amount, you are hitting every constituency, every stri in theountry, in some way. the democrats are sitting and watching this and they are going to feast on this. >> the road back has already been laid out there. the republican study committee has such things as cutting out all aid to egypt, for example. that is one of the things they want to do. i think the house should work its will on each amendment. the republicans to propose these cuts should stand up there and have to defend it and see what the republican party -- >> the problem is this -- it is on 1/12 of t budget anyway. the money that is going to go

untouched, of course, is entitlements. unless you change that, you not going to change the budget and save the economy even if you have these draconian cuts. >> webb is leaving, kyl is leaving. what is the senate going to look like? >> we don't know, but there are good opportunities that have to emerge for republicans. in the chamber right now, it is good news for republicans. virginia is a good race for em, north dakota is definitely a good race for them. virginia was going to be a hard fought race anyway, but it might have gotten easier now. >> george allen wants to come back and virginia, and tim kaine, the governor, they want him to run. >> that comes down to his relationship with the president. with jim webb, most politicians

come back to this town and then they are at chamber of commerce college and a fight tooth and nail to stay here and they leave in a box, a ballot box or pine box. jim webb came as a maverick and he is leaving as a maverick. he wrote to the gi bill, he took the matter of incarceration, with the more people incarcerated in the united states than any place and the earth. >> representative chris lee resigned after the website dr. publis -- the website gawker publish pictures of thehim shirtless. >> i have never heard of them before, and he was gone before i got to know him. i don't think any of us here

topless on tv -- he added, he could fly it, i guess. >> can i endorse mark onto the w -- on jim webb? remarkable guide. he was a novelist, war hero, a great life outside, secretary of the navy in the reagan administration. a guy who was a real life, extremely creative guy. i think he decided he came here for six years and did what he wanted to do enand he doesn't spent 12 years in any one place. i commend him for what he is do on the wahe walked away. >> i think there should be a rule in washington that you stay for your first scandal headlines. you cannot quit that fast. >> three hours.

his at situation -- his district borders that of tickle monster eric massa. >> i understand the challenges you face, i understand you are under incredible pressure to cut costs and keep your margins up. i understand the significance of your obligations to shareholders, and the pressures created by quarterly reports. i get 8. >> that is that president obama speaking to the chamber of commerce, which spent millions attacking him in the last election. jeanne, when the president says "i get it," what does he mean? >> that all the c e l's who anonymously complaint and complained, "they don't get it." he says, "i do, i will change things." >> when he says, "get in the

game," what does he mean? >> get in the game now, get in there and start creating jobs. >> if you are on the left of the democratic party and uc president obama making nice with the chamber of commerce, how do you feel? >> people are really on the left are not happy with it, but they understand nothing is going to happen with this relationship with the chamber of commerce will stay with the republican nominees, no question about it all, can do is softened a little bit of the hostility -- all obama can do is softened a little bit of the hostility. >> so what is the point, mark? >> i barely that barack obama is refashioning his image to independent -- apparently that barack obama is refashioning his image to independent voters. recall that business' demand

last december was we are uncertain about taxes. he gives them their tax bill. now it is regulation. next year it will be unless you get rid of these child labor laws and the minimum wage law -, we cannot do business in this environment but what do they what? >> charles, what do they want? >> how do i compete with that? "yes, we are in favor of repeal of the child labor laws." mark is right, it is about independence, repositioning. this is daley, the tax-cut bill, his attack on regulation, promised to reorganize the government in the state of the unit is nothing of substance, all about appearances, is empty.

>> i will take issue with that. i agree that a lot of it is out independent tersnd reshaping the image. but the president would like to score a few more legislative victories, trade deals, a few other things he would like to bag before he runs for reelection bid this white house cannot get a majority vote in the republican house. they cannot get those votes. the chamber can get those votes. far into any legislative victories, he needs the business -- for him to get legislative big trees, he needs the business community lobbying him. >> it is not that he has to go to the chamber to get that done. >> redskins owner dan snyder sues "washington city paper," and he has deep pockets. the polish "the crank the redskins fan guy -- and they published "the cranky redskins

fan guide." he sued, saying that they defamed him and that the picture was anti-semitic. colby, that would be indefensible if the team were not the redskins -- that would be defense will of the team were not the redskins. >> dan snyder is wrong on so many friends. -- so many fronts. the paper is so small. the fact of the matter is, dan snyder has ruined a washington redskins. it will take years before the franchise can recover, in large part due to the mismanagement of dan snyder erybody in town ows . >> colby sayay that the lawyers message was our pockets are much deeper than yours. >> defending this lawsuit will soon outstrip the value of the city paper itself.

it is clearly a snarky threat. this is a puerto -- this is a pr disaster. amateur advisers would know that this is about the stupidest things you can do. this paper is a village of the obscure. now it is on the headlines of espn and nationally. crazy. i've got to share this -- on the website this week, dan snyderr had 100% negative rating, and mubarak only had 67% of negative rating. that is how bad it is. >> dan snyder is a jerk. i mean, he is just an absolute jerk. this piece documented his meddling in confidence as the owner of -- incompetence as the owner of the redskins. he is a millionaire trying to put out of business in a

precarious publication. as for the anti-semitic charges, all you have to do is go online with that image, and up pops one person on posters and mugs -- it is barack obama. nobody, not even glenn beck, suggested he is jewish. >> again,ow do i top this guy? i have notead the article, but i think everybody has the right if they have been maligned to sue. but i agree, is an obscure article and it is been given prominence by dan snyder's actions. >> last word. we will see you next week. for a transcript of this broadcast, log on to insidewashington.tv.